FAC Explorer

Audit 317476

FY End
2023-12-31
Total Expended
$2.09M
Findings
6
Programs
5
Organization: Poverello Center, INC (MT)
Year: 2023 Accepted: 2024-08-19
Auditor: Carver Florek & James Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
481444 2023-001 Significant Deficiency - L
481445 2023-002 Significant Deficiency - A
481446 2023-003 Significant Deficiency - I
1057886 2023-001 Significant Deficiency - L
1057887 2023-002 Significant Deficiency - A
1057888 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.43M Yes 0
14.231 Emergency Solutions Grant Program $125,000 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $101,193 - 0
14.218 Community Development Block Grants/entitlement Grants $60,605 - 0
97.024 Emergency Food and Shelter National Board Program $6,125 - 0

Contacts

Name Title Type
FQCXFR3MWB78 Jill Bonny Auditee
4067281809 Keegan Witt Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Poverello, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Poverello. INDIRECT COST RATE The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. SUB-RECIPIENT No federal funds were passed to sub-recipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Poverello, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Poverello.
Title: INDIRECT COST RATE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Poverello, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Poverello. INDIRECT COST RATE The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. SUB-RECIPIENT No federal funds were passed to sub-recipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
Title: SUB-RECIPIENT Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Poverello, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Poverello. INDIRECT COST RATE The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. SUB-RECIPIENT No federal funds were passed to sub-recipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The Poverello has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. No federal funds were passed to sub-recipients during the year ended December 31, 2023.

Finding Details

Finding 2023-001
2023-001 INTERNAL CONTROLS OVER PREPARATION OF SCHEDULE OF FEDERAL AWARDS Criteria: The Organization should have proper controls in place over the preparation of the SEFA to ensure accurate reporting of federal awards. Condition: We found that the SEFA prepared by the Organization included expenditures from the prior year. Cause: The Organization’s procedure for evaluating the proper period of SEFA reporting did not detect this error on the SEFA. Effects: The SEFA initially provided to us over reported expenditures, this matter has been corrected in the accompanying SEFA. Recommendation: We recommend the Organization implement procedures to verify proper period for all expenditure of federal funds.
Finding 2023-002
2023-002 INTERNAL CONTROLS OVER ALLOWABLE COST PRINCIPLES Criteria: Federal grant agreements and contracts require entities to have an approval process in place for expenditure of federal awards to ensure that activities are allowed under federal agreements. Condition: For 1 of the 25 transactions tested we found that the Organization had not followed their policy of obtaining authorization from the appropriate level of management. Cause: The Organization does have controls in place to ensure that this compliance is checked on a daily basis, but the control was deficient on various occasions and appears to be an oversight. Effects: The Organization could allow expenditures that are not allowable in the lines of the federal agreement that could produce the Organization being noncompliant with laws and regulations with the agreement and be subject to penalties or withdraw of federal funding status. Recommendation: We recommend that management implements a comprehensive plan to ensure that all transactions receive proper approval after a thorough review of each transaction.
Finding 2023-003
2023-003 INTERNAL CONTROLS OVER COMPLIANCE OF SUSPENSION AND DEBARMENT Criteria: Federal grant agreements and contracts require ensuring vendors are not suspended or debarred by the Federal government. Condition: During our testing we found that 2 of the 25 transactions had not been properly checked to ensure that the vendor was not suspended nor debarred prior to making payment. Management as since verified that these vendors are not suspended or debarred. Cause: The Organization did have procedures in place to check vendors for suspension and debarment, but controls were missed for an instance of evaluation and appears to be an oversight. Effects: The Organization could do business with a vendor which has been suspended or debarred resulting in non-compliance with federal awards and subject federal dollars to possible fraud, waste, or abuse. Recommendation: We recommend that management implements a comprehensive plan to ensure that all vendors are checked for suspension/debarment prior to making payment.
Finding 2023-001
2023-001 INTERNAL CONTROLS OVER PREPARATION OF SCHEDULE OF FEDERAL AWARDS Criteria: The Organization should have proper controls in place over the preparation of the SEFA to ensure accurate reporting of federal awards. Condition: We found that the SEFA prepared by the Organization included expenditures from the prior year. Cause: The Organization’s procedure for evaluating the proper period of SEFA reporting did not detect this error on the SEFA. Effects: The SEFA initially provided to us over reported expenditures, this matter has been corrected in the accompanying SEFA. Recommendation: We recommend the Organization implement procedures to verify proper period for all expenditure of federal funds.
Finding 2023-002
2023-002 INTERNAL CONTROLS OVER ALLOWABLE COST PRINCIPLES Criteria: Federal grant agreements and contracts require entities to have an approval process in place for expenditure of federal awards to ensure that activities are allowed under federal agreements. Condition: For 1 of the 25 transactions tested we found that the Organization had not followed their policy of obtaining authorization from the appropriate level of management. Cause: The Organization does have controls in place to ensure that this compliance is checked on a daily basis, but the control was deficient on various occasions and appears to be an oversight. Effects: The Organization could allow expenditures that are not allowable in the lines of the federal agreement that could produce the Organization being noncompliant with laws and regulations with the agreement and be subject to penalties or withdraw of federal funding status. Recommendation: We recommend that management implements a comprehensive plan to ensure that all transactions receive proper approval after a thorough review of each transaction.
Finding 2023-003
2023-003 INTERNAL CONTROLS OVER COMPLIANCE OF SUSPENSION AND DEBARMENT Criteria: Federal grant agreements and contracts require ensuring vendors are not suspended or debarred by the Federal government. Condition: During our testing we found that 2 of the 25 transactions had not been properly checked to ensure that the vendor was not suspended nor debarred prior to making payment. Management as since verified that these vendors are not suspended or debarred. Cause: The Organization did have procedures in place to check vendors for suspension and debarment, but controls were missed for an instance of evaluation and appears to be an oversight. Effects: The Organization could do business with a vendor which has been suspended or debarred resulting in non-compliance with federal awards and subject federal dollars to possible fraud, waste, or abuse. Recommendation: We recommend that management implements a comprehensive plan to ensure that all vendors are checked for suspension/debarment prior to making payment.